Guaranteed Student Loan Program, Commissioner of Higher Education Financial Audit for the Fiscal Year Ended .. 2006

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The MGSLP disbursement service records all adjustments to individual student loan accounts and ensures that school refunds of loan proceeds are promptly returned to the lenders. As of June 30, 2006, MGSLP's disbursement service held $183,577 in student loan funds that are to be refunded to lenders after June 30, 2006. Disbursement service revenues earned during fiscal year 2006 were $167,796.
6. DUE TO FEDERAL GOVERNMENT After assignment to the guaranty agency, MGSLP seeks collection of student
... loans that have defaulted. A portion of the recoveries of loans reinsured by the Department of Education (DE) is owed back to DE (Note 12). At June 30, 2006, the amount owed to DE was $708,883 7. DESIGNATED FUND BALANCE During fiscal year 2003, the Department of Education (DE) allowed guaranty agencies to transfer any unspent recall interest earned during prior fiscal years from the Federal Student Loan Reserve Fund to the Agency Operating Fund. The total amount of funds transferred at that time was $820,346.

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